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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (39826)	4/13/2000 3:19:00 PM
From: scott	Respond to of 93625

Thread: FWIW, here is recent MSDW opinion update on RMBS. Rambus (RMBS-$212-O) F2Q00 In-Line; Maintain Outperform Mark Edelstone RMBS operating results were in line with our expectation. RMBS reported F2Q00 (Mar) EPS of $0.15 that met our estimate and were above the consensus estimate of $0.14. Royalties on shipments of RMBS ICs in the Oct-Dec period increased 33% Q/Q to $3.5MM. In F3Q00, RMBS should start to receive royalties from the launch of Sony Playstation 2 and Direct Rambus-based PCs in F3Q00. As part of a program for employee retention, RMBS recorded a one-time charge of $171MM associated with the vesting of certain employee options and common stock equivalents. This was a non-cash charge, except for a $1.2MM payment for payroll taxes that should offset by cash received from exercise of the warrants, options and CSEs. We maintain our Outperform rating. We believe the RMBS story is on track. We continue to believe that RMBS' intellectual property business model offers significant earnings power. We expect RMBS to advance as Direct Rambus gains momentum in the PC market and applications broaden.

To: Ali Chen who wrote (39826)	4/13/2000 3:29:00 PM
From: Dave B	Respond to of 93625

Ali, I thought we were discussing merits of Rambus here, No, I'm talking about making an investment in a company and whether or not that company will succeed. There are technical, marketing, manufacturing, support, and sales factors that have to come together and we're weighing the merits of all of these. In this case, the unbiased benchmarks showing PIII/820/RDRAM systems better than anything else are of great PR value and will be used by many in their buying decision. Since you happen to be a Dell's investor as well, I haven't owned Dell since last April. I sold my stake in February before the big tumble, then bought back after I thought they had bottomed out. Lost a little, but not as much as I made before then. However, I would imagine that if Dell starts to see significant field returns, they would consider that a problem and would halt shipment of the RDRAM-based products until the problem was fixed. They're very quality conscious. Since they've been shipping for 3 months now and continue to ship them, I suspect it's not an issue for them. Dave